The Stockholder's Equity accounts of a corporation on January 1, 2022, were as follows: Preferred Stock (6%,
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Question:
The Stockholder's Equity accounts of a corporation on January 1, 2022, were as follows:
Preferred Stock (6%, $200 par, cumulative, 4,000 shares authorized) = $470,000
Common Stock ($5 par, 1,000,000 shares authorized) = 1,350,000
Additional Paid in Capital - Preferred=$89,300
Additional Paid in Capital - Common =$6,480,000
Retained Earnings = $1,657,000
Treasury Stock-Common (7,000 shares)
During 2022, the corporation had the following transactions and events relating to its stockholders equity.
Jan. 2 Issued 30,000 shares of common stock in exchange for property. On this date the stock was trading for $15 per share.
Feb. 21. Issued 400 shares of preferred stock at $250 per share.
March. 21 Sold 1,000 shares of treasury stock-common for $21 per share.
Nov. 14. Purchased 2,000 shares of common stock for the treasury at a cost of $22,000
Dec. 31. Determined that net income for the year was $318,000. Dividends were declared and paid during Decemeber. These dividends included a $0.25 per share dividend to common stockholders of record as of December 20. There are no dividends in arrears.
As of December 31, 2022, what is the average selling price of the preferred stock?
A) $225.00
B) $280.55
C) $200.00
D) $239.75
E) $207.27
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